N&P increases interest rate on fixed rate bonds

N&P (Norwich and Peterborough Building Society) is increasing the interest rate on a number of its fixed term savings bonds, to provide savvy savers with some of the best deals currently available on the market.

N&P is increasing its 1 Year Bond by 0.15% to 3.20% AER, its 6 Month Bond by 0.30% to 2.55% AER, and raising the rate on its 5 Year Bond by 0.25% to 4.00%.

Gary Lacey, savings manager at N&P said: "This is good news for people who want to make their money work hard for them, particularly while the economy is still having difficulties.

"Putting away some cash now in our competitive 6 Month Bond will give customers a welcome financial boost in the New Year, alternatively those who want to leave their money for a little longer in our 1 Year Bond will see their money return with interest just in time for summer holidays.

The bond can be opened with a minimum investment of £1,000 up to a maximum of £1 million, so the more people invest, the greater their return.